European Central Bank (ECB) Chief Economist Philip Lane said on Monday that another rate hike in July seemed appropriate but noted that the decision in September will depend on incoming data, per Reuters.

Key takeaways

"Inflation will come down fairly quickly in the next couple of years to the ECB's 2% target."

"ECB needs to be data-dependent about inflation outlook."

"ECB is looking at a variety of measures to analyze shocks to prices."

Market reaction

EUR/USD showed no immediate reaction to these comments and extended its sideways action slightly above 1.0900.